10/25/2023 - WorldOra's Carbon News

Shell cuts low-carbon jobs, scales back hydrogen in overhaul by CEO.

LONDON, Oct 25 (Reuters) - Shell (SHEL.L) will cut at least 15% of the workforce at its low-carbon solutions division and scale back its hydrogen business as part of CEO Wael Sawan's drive to boost profits, it said on Wednesday.

The staff cuts and organizational changes come after Sawan, who took the helm in January, vowed to revamp Shell's strategy to focus on higher-margin projects, steady oil output and grow natural gas production.

"We are transforming our Low Carbon Solutions (LCS) business to strengthen its delivery in our core low-carbon business areas such as transport and industry," the company said.

The LCS operations include the hydrogen and other businesses looking at decarbonizing the transport and industry sectors, but do not include the renewable power business.

The division also includes Shell's carbon capture and storage and nature-based solutions businesses, which will not be impacted by the current round of cuts, the sources said.

Shell plans to sharply scale back its hydrogen light mobility operations, which develop technologies for light passenger vehicles, and will focus on heavy mobility and industry, the company said.

Shell was one of the early backers of hydrogen-fuelled cars, but it has in recent years closed a number of hydrogen fuelling stations around the world, including in Britain, as consumers opted instead for electric vehicles.

U.S. rivals Exxon Mobil (XOM.N) and Chevron (CVX.N) have doubled down on fossil fuel production, announcing large acquisitions of oil companies in recent weeks.

IN SUMMARY:

• Shell to cut 200 jobs, or 15%, of low-carbon solutions unit

• A further 130 jobs under review

• Shell scraps hydrogen light mobility unit